GOVERNMENT DEPOSIT SCHEMES

(PUBLIC PROVIDENT FUND,SENIOR CITIZENS SAVINGS SCHEME, 2004 &SUKANYA SAMRIDDHI ACCOUNT YOJANA)

Prepared by,

Abinash Kr. Mandilwar Chief Manager & Faculty Member, Staff Training College, Bhopal

PUBLIC PROVIDENT FUND

PUBLIC PROVIDENT FUND The Public Provident Fund Scheme is a statutory

scheme of the Central Government of India. Public Provident Fund Account (PPF Account) is a long

term Debt Scheme of Govt. of India on which regular interest is paid.

Any Individual (No joint a/c) in India can invest in this scheme and can earn a handsome tax free return.

NRIs, HUF, Company, Trust, Society are not allowed to invest in PPF.

No age is prescribed for opening a PPF account. Either father or mother can open PPF Account on

behalf of minor. In the death of parents, Grand parents can open a PPF Account.

SPECIAL FEATURES OF PPF ACCOUNT The balance amount in PPF account is not subject

to attachment under any order or decree of court in respect of any debt or liability.

A Power of attorney holder can neither open or operate a PPF account.

Deposits are exempt from wealth tax. More than one person nomination facility available. Best for long term investment. Bank of India is one of the best Bank where

deposits are accepted inter-sol and since it provides better flexibility like standing instructions through net Banking.

INVESTMENT IN PPF ACCOUNT Public Provident Fund Interest Rate is fixed by the Ministry of

Finance, Government of India, annually, and at present is 8.1% compounded annually (as of April 1st 2016).

The minimum initial deposit is Rs. 500/-, with multiple of Rs. 100/- thereafter and maximum is Rs. 1,50,000/- in a F/Y.

One deposit is mandatory in each financial year. The deposit can be in lump sum or in convenient instalments,

not more than 12 Instalments in a year or two instalments in a month subject to total deposit of Rs.1,50,000/- per FY.

The discontinued account can be activated by payment of minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.

The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.1,50,000/-.

FEATURES OF PPF ACCOUNT The Scheme is for 15 years. The account holder has an option to extend the PPF account for any

period in a block of 5 years on each time. The account holder can retain the account after maturity for any

period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.

Premature Closure: Allowed only after 5 years in the following cases:1. On the death of the depositor (without any locking period),2. That the amount is required for the treatment of serious ailments or

life threatening diseases of the account holder, spouse, dependent children or parents, on production of supporting documents from competent medical authority.

3. That the amount is required for higher education of the account holder or minor account holder, on production of documents and fee bills in confirmation of admission in a recognize institute in India or abroad.

LOAN & PART WITHDRAWAL According to Public Provident Fund Scheme 1968, the facility

of loan against the PPF deposits is available from 4th to 6th year of deposit to the extent of 25 % of the amount deposited as at the end of the last financial year.

The loan is repayable in 36 months. There is a lock-in period of 15 years and the money can be

withdrawn in whole after its maturity period. However, pre-mature withdrawals can be made from the end of the sixth financial year from when the commenced.

The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

One withdrawal in each financial year is also admissible in such account held beyond 15 years subject to a ceiling of 60% of the balance at the end of the 15 year term.

PUBLIC PROVIDENT FUND The PPF scheme is operated through Post Office

and Nationalized banks through its authorized branches as per GOI notification. Presently Bank of India is having 4032 authorized branches .

Account is transferable from one Post office to another and from Post office to Bank and from Bank to Post office.

Account is transferable from one Bank to another bank as well as within the bank to any branch.

Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.

The interest on deposits is totally tax free.

DOCUMENTS REQUIRED FOR PPF ACCOUNT

Documents for the PPF account are similar to the any other account in banks.

A recent passport size photograph. Identity Proof copy with original to verify ( Even PAN

Card may be accepted as all tax payers are having it). Address Proof copy with original to verify. Account opening form for PPF( available on Bank’s

website). Paying in slip for PPF a/c ( available on Bank’s website). Nomination form for PPF ( available on Bank’s website). Account number of the saving account in respective

bank ( if you are having you’re a/c with the Bank).

ANY QUESTION ?

SENIOR CITIZENS SAVINGS SCHEME, 2004

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SENIOR CITIZENS SAVINGS SCHEME, 2004

It is a Government of India Product. Any depositor may open an TDR Account at any deposit

office with the amount of deposit in multiple of Rs. 1000/-, along with age proof.

A depositor may operate more than one account subject to the condition that deposits in all accounts taken together shall not exceed the maximum limit of Rs.15 lakhs and provided that deposits by depositors shall be restricted to the retirement benefits or Rupees Fifteen lakhs whichever is lower.

A depositor may open the account in individual capacity or jointly with spouse.

NRI's and HUF are not eligible to open an account under these rules.

ELIGIBILITY An individual who has attained the age of 60 years

and above on the date of opening of an account. who has attained the age of 55 years or more but

less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.

who has retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account,

The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits subject to fulfilment of other specified conditions.

DEPOSITS AND WITHDRAWALS Period: All TDRs will be fixed for five years. Maturity: The deposit made will mature after the expiry

of five years from the date of opening of the account. Renewal: The depositor may extend the TDR Account

for a further period of three years after the maturity period of five years. An application required within a period of one year after the date of maturity period.

Overdue Term Deposit: In case a depositor does not close the account on maturity and also does not extend the account, the account will be treated as matured and the depositor will be entitled to close the account at any time along with the interest at the rate of Post office Savings Accounts from time to time will be payable on such matured deposits up to the end of the month preceding the month of the closure of the account.

PREMATURE CLOSURE OF ACCOUNT Withdrawal permitted after one year of opening the account

but with penalty. Depositor may be permitted to withdraw the deposit and

close the account at any time after the expiry of one year from the date of opening of the account subject to the following conditions:-

In case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one and half percent of the deposit shall be deducted and the balance paid to the depositor.

In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one percent of the deposit shall be deducted and balance paid to the depositor.

ROI / NOMINATIONRate of Interest: The deposit made under these rules shall bear interest

@ 8.6 % p.a. from the date of deposit payable at the end of each calendar quarter e.g. 31st March / 30th June / 30th September / 31st December. Compounding of interest not permissible.

TDS Applicable.Nomination: The depositor may nominate a person or more than one

person, at the time of opening of the account or at any time after the opening of the account but before its closure.

Nomination made by the depositor can be cancelled or varied.

DEATH OF THE DEPOSITOR In case of death of the depositor before maturity

the account shall be closed and deposit refunded on application in Form F  along with interest to the nominee or legal heirs in case the nominee has also expired or nomination was not made as per rules.

If the total amount including interest payable is up to Rupees one lakh, it may be paid to the legal heirs on production of (i) letter of indemnity (ii) an affidavit (iii) a letter of disclaimer on affidavit (iv) a certificate of death of the depositor on stamped paper in the form as in Annexure to Form F.

SUKANYA SAMRIDDHI ACCOUNT YOJANA

SUKANYA SAMRIDDHI YOJANASukanya Samriddhi Yojana has been introduced

vide Government of India Notification No. G.S.R.863(E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA). CDD/No. 4052/15.02.006/2014-15 dated 11th March 2015. Facility to open accounts under the scheme is available at all Bank of India branches.

Objective: To promote the welfare of Girl Child.Scheme Code: SK169Finacle Menu for the scheme: SSAM

SUKANYA SAMRIDDHI YOJANA Who can open the account:  The account may be

opened by the natural or legal guardian in the name of a girl child.

Age of girl child: Account can be open from the birth of the girl child till she attains the age of ten years. Any girl child, who had attained the age of ten years, one year prior to the commencement of these rules, shall also be eligible for opening of the account under these rules.

Maximum number of accounts: Up to two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children.

SUKANYA SAMRIDDHI YOJANA Minimum and Maximum Amount of Deposit: Min.1000

of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.1,50,000/- in a financial year.

Tenure of the Deposit: 21 years from the date of opening of the account.

Maximum period up to which deposits can be made: 14 years from the date of opening of the account.

Irregular Payment/ Revival of account: By payment of penalty of Rs.50 per year along with the minimum specified amount per year.

Maturity: The account remains operative for 21 years from opening or till marriage of the girl child after reaching the age of 18, whichever is earlier.

SUKANYA SAMRIDDHI YOJANA Operation of account:

1) The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of ten years.

2) On attaining age of ten years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or any other person or authority.

Transfer of account: The account may be transferred anywhere in India if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.

SUKANYA SAMRIDDHI YOJANA Premature Closure: Allowed in the event of

death of the depositor or in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government.

Withdrawal : 50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.

SUKANYA SAMRIDDHI YOJANA Interest on Deposit: As notified by the GOI,

compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands. (Current rate 8.60%).

Tax Rebate: As applicable under section 80C of the IT Act, 1961

NOTE: As this is a Govt. of India scheme, customers are advised to visit, for latest instructions / modification in the scheme.  http://www.nsiindia.gov.in/writereaddata/FileUploads/SSA_GZT.pdf